The IRS announced on March 17, 2021 that it was extending the due date for 2020 individual tax returns from April 15, 2021 until Monday, May 17, 2021. This extension followed a groundswell of sentiment on many fronts that the due date should be extended this year. In the recent weeks, key members of Congress have joined in the efforts to push back the filing date.
The extension was made in an IRS Announcement on March 17, 2021 (“The Luck of the IRiSh!”). Here are several items to note from this IRS Announcement:
- This extension only applies to individual tax returns. It does not apply to tax returns for corporations, trusts, gifts, that are due April 15, 2021.
- First Quarter Individual Estimates for 2021. The extension of the due date for 2020 tax returns does not change the due date for the first quarter 2021 individual estimated tax payments. These 2021 first quarter estimates are still due on April 15, 2021.
- IRA Contributions. There is no mention in this Announcement on the due date for IRA contributions. Contributions to an IRA are normally due with the April 15 individual tax return due date. It is uncertain if the IRA contribution due date for 2020 will also be extended until May 15, 2021 or remain on April 15, 2021.
- State Tax Filings. With the announcement of this one-month extension, the IRS put the pressure on state tax agencies across the country to address this matter. Will each state also move their due date to May 17, 2021? Move it to some other day? Or keep it on April 15, 2021? States will likely address this issue in the coming days, so please check your state tax or revenue website to see how your state is handling the due dates for 2020 individual tax returns.
We will continue to monitor this situation to see if the IRS extends any other tax returns or payment dates, or if it makes other changes in these rules. You may recall last year during the 2019 tax return filing period, the IRS issued relief in a series of announcements. Therefore, please stay tuned as there may be other developments to these due dates, and they might address several of the issues noted above.
Please contact your Sikich tax advisor with any questions.